Cryptocurrency research firm Diar has indicated that institutional traders recently registered record high volumes on bitcoin (BTC) derivatives exchanges in a report published on May 21.
Per the report, bitcoin derivatives trading on the Chicago Mercantile Exchange (CME) hit an all-time-high for...

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Cryptocurrency research firm Diar has indicated that institutional traders recently registered record high volumes on bitcoin (BTC) derivatives exchanges in a report published on May 21.
Per the report, bitcoin derivatives trading on the Chicago Mercantile Exchange (CME) hit an all-time-high for two months in a row.
Bitcoin derivatives trading volume on CME. Source: Diar
Cryptocurrency exchange BitMEX is reportedly also seeing much of the same trading volumes because of recent volatility in the digital assets market, while Dutch bitcoin futures and options exchange Deribit has seen a more institution-based audience. According to Diar, Deribit has been hitting record volumes month-on-month.
Regarding physically-settled bitcoin futures, physically delivered cryptocurrency futures exchange CoinFLEX has witnessed interest from crypto venture capital firm Digital Currency Group and investment company Polychain, which have reportedly already launched two future contracts.
As reported earlier this month, CME Group reported record volume for its bitcoin futures on May 13 as the cryptocurrency’s surprise bull market continued. On May 13, the exchange saw an all-time record of 33,700 contracts. That figure represented an equivalent 168,000 BTC ($1.35 billion) — an almost 50% rise versus the previous high of 22,500 contracts and 112,700 BTC (currently $909.2 million) on April 4.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Market data is provided by the HitBTC exchange.
Bitcoin r...

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The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Market data is provided by the HitBTC exchange.
Bitcoin rallied about 101.55% between April 2 and May 14. This sharp rally after a long bear phase surprised many, including us. Analysts at JPMorgan Chase have said that, after the rally, Bitcoin is trading above its intrinsic value. They find some similarities in the current rally to the one in late 2017.
However, we believe that a rally of such a magnitude was necessary to change the sentiment from sell on rallies to buy on dips. Fundstrat Global Advisors co-founder Tom Lee tweeted that the bear market is over. In a recent conference, he cited 13 reasons that indicate the end of the bear phase.
The recent upsurge in prices has attracted investors back into cryptocurrencies. The trading volumes at the centralized exchanges skyrocketed in April. Notwithstanding, we do not expect a vertical rally from current levels. It is likely to be a gradual up-move. We may witness one more round of selling that will shake out the weaker hands before starting a sustained uptrend.‏
BTC/USD
Bitcoin (BTC) held the 20-day EMA and rebounded sharply on May 19. However, the bears are mounting a strong defense at the overhead resistance of $8,496.53. If the bulls fail to scale this level, the digital currency might remain range bound between the 20-day EMA and $8,496.53.
A breakdown of the 20-day EMA can drag the price down to the next critical support of $5,900. We expect this level to hold.
On the contrary, if the bulls scale above $8,496.53, the BTC/USD pair can rally to the next target of $10,000. The trend is bullish as both the moving averages are sloping up and the RSI is close to the overbought zone. However, we do not find any reliable buy setups yet, hence, we are not suggesting a trade in it.
ETH/USD
The drop in Ethereum (ETH) took support at $225.39. This is a positive sign. Both the moving averages are sloping up and the RSI is in positive territory. This suggests that the bulls have the upper hand. The digital currency will now try to move up to the $300–$322 resistance zone.
On the other hand, if the ETH/USD pair plummets below $225.39, it will lose momentum. The trend will weaken if the 20-day EMA breaks down. Therefore, if the traders hold some long positions, they can raise the stop loss to $210. They can keep trailing the stops just below the 20-day EMA. Others, who have already closed the long positions can wait for a new buy setup to form before entering again.
XRP/USD
Ripple (XRP) triggered our buy levels recommended in the previousanalysis. Though the digital currency bounced on May 19, the bulls could not sustain the higher levels. It has again dipped towards the 20-day EMA, which is an important support to watch out for.
If the bears sink the XRP/USD pair below the moving averages, a drop to $0.27795 is probable. Therefore, traders can keep the stop loss on the long positions at $0.2750.
Conversely, if the pair bounces off the 20-day EMA and scales above $0.45, it is likely to pick up momentum and move up to $0.60. Though there are minor resistances at $0.50 and $0.55, we expect them to be crossed.
BCH/USD
Bitcoin Cash (BCH) rebounded from the 20-day EMA, which is a positive sign. The trend remains bullish as both the moving averages are sloping up and the RSI is above 50. On the upside it is facing selling at the resistance line of the channel. If the bulls fail to break out of the channel, the digital currency might still move up gradually as long as it stays above the 20-day EMA.
The first sign of weakness will be a break below the 20-day EMA. After that, a drop to the support line of the channel is probable. A breakdown of the channel will change the trend in favor of the bears. On the other hand, if the BCH/USD pair breaks out of the channel, it can pick up momentum and rally to $600.
LTC/USD
Litecoin (LTC) bounced from the first support and scaled above $91 on May 19, but it is struggling to stay above this level. It is again back below $91 and might retest the support at $84.3439. The 20-day EMA is also just above this support. Hence, this is an important level to watch out for.
If the LTC/USD pair slides below $84.3439, it can fall to $74.6054. If this support also gives way, the pair can drop to $66.47.
On the other hand, if the bulls propel the digital currency above $91 and sustain it, a rally towards its target objective of $158.91 is probable. Hence, the traders can keep the stop loss on the long positions at $70.
EOS/USD
EOS found support just above the 20-day EMA, which is a positive sign. Both the moving averages are trending up and the RSI is in the positive territory. This suggests the bulls have the upper hand. However, they are currently finding it difficult to push the price above $6.8299.
failure to scale above $6.8299 will result in a consolidation for a few days. The EOS/USD pair will weaken on a breakdown of the moving averages. In such a case, a drop to the bottom of the large range at $4.4930–$6.8299 is probable. The trend will turn negative if the pair dips below the $4.4930–$3.8723 support zone.
BNB/USD
Binance Coin (BNB) made another new intraday high on May 19 but failed to break out of the resistance line. This is the fourth time the digital currency has turned down from this resistance.
The BNB/USD pair might now correct to the 20-day EMA, which is likely to act as a strong support. A break below the 20-day EMA will weaken the momentum and if the pair slides below the 50-day SMA, it will signal a deeper correction.
The trend remains up as both the moving averages are sloping higher and the RSI is close to the overbought zone. If the bulls break out of the resistance line, it is likely to pick up momentum.
XLM/USD
Stellar (XLM) has been consolidating near the overhead resistance of $0.14861760 for the past six days. The dips have been bought by the bulls, which shows demand at lower levels. If the digital currency breaks out and closes (UTC time frame) above $0.14861760, it can rally to $0.22466773. The 20-day EMA is sloping up and the RSI is in the positive zone, which suggests that the bulls have the upper hand.
ir fails to climb above the overhead resistance, it might remain range-bound between $0.1150 and $0.14861760 for a few days. The pair will weaken if it breaks below the moving averages.
ADA/USD
The bulls are finding it difficult to propel Cardano (ADA) above the overhead resistance of $0.094256. Now, the bears will attempt to sink the price below the moving averages. If successful, a drop to $0.057898 is probable. If this level also breaks down, the trend will turn negative.
However, if the ADA/USD pair rebounds off the moving averages and climbs above the overhead resistance of $0.094256, it will complete a reversal pattern that has a target objective of $0.161275. The moving averages are sloping higher and the RSI is just above the midpoint. This shows that the bulls have a minor advantage. Therefore, traders can initiate long positions based on our previous recommendation.
TRX/USD
Though Tron (TRX) rose above $0.02815521 on May 19, the bulls could not sustain the highs. However, the positive thing is that it is clinging close to the top of the range. If the sentiment remains strong, we anticipate another attempt by the bulls to break out of the consolidation.
If the TRX/USD pair sustains above $0.02815521 for 3 days, it is likely to start a new uptrend that can easily carry it to $0.40 where it might face some resistance. The pair has spent a long time in the range, hence, the next leg of the up-move is likely to surprise on the upside. Above $0.40, the rally can extend to $0.50.
Our bullish view will be invalidated if the cryptocurrency fails to sustain above the range. In such a case, the range bound action will continue for a few more days. For now, traders can maintain the stop loss on the long positions at $0.0209. We will raise it at the first available opportunity.
Market data is provided by HitBTC exchange. Charts for analysis are provided by TradingView.

Hodler’s Digest, May 13–19: Top Stories, Price Movements, Quotes and FUD of the Week
Top Stories This Week
Coming every Sunday, the Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, ...

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Hodler’s Digest, May 13–19: Top Stories, Price Movements, Quotes and FUD of the Week
Top Stories This Week
Coming every Sunday, the Hodler’s Digest will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions, and much more — a week on Cointelegraph in one link.
Bitstamp Starts Investigation After Large BTC Sell Leads to $250 Million Liquidated on BitMEX
Major crypto exchange Bitstamp launched an investigation this week after a large bitcoin (BTC) sell order heavily impacted its order book. Bitstamp reported on the execution of the large bitcoin sell order from BTC to United States dollars, without specifying themselves the details of the transaction. Other crypto media noted that it involved a sell order that led to a liquidation of $250 million long positions on the BitMEX exchange with 5,000 BTC sold at $6,200, which further resulted in price declines on other crypto exchanges. Some crypto commentators suggested that the sell order could be made by mistake, with the order’s owner having meant to sell his/her bitcoin at $8,200 instead of $6,200.
Flexa Launches App Where Shoppers Can Spend Crypto at 15 Major U.S. Retailers
Payments startup Flexa unveiled an app this week that allows consumers to spend cryptocurrencies at major American retailers. The app, called Spedn, is currently set up to work with retailers including Barnes & Noble, Bed Bath & Beyond, GameStop, Lowe’s, Nordstrom, Office Depot and Whole Foods Market, with more stores to be added in the coming months. Stores that aren’t able to accept cryptocurrency will require the crypto to be instantly converted to fiat when an item is purchased. As of now, purchase on Spedn can be made with bitcoin, ether (ETH), bitcoin cash (BCH) as well as the gemini dollar (GUSD) stablecoin.
U.S. SEC Delays Decision on Bitwise Bitcoin ETF, Seeks Public Comment
The U.S. Securities and Exchange Commission (SEC) has again delayed its decision to approve or disapprove cryptocurrency index fund provider Bitwise Asset Management’s bitcoin (BTC) exchange-traded fund (ETF) application. In this week’s filing, the SEC also noted that it requested public comment from interested parties, asking for “written submissions of their views, data, and arguments with respect to the issues identified above, as well as any other concerns they may have with the proposal.” Bitwise had initially filed for an ETF in February, under the condition that the SEC would reach a decision in 45 days, with its application differing from others in that it draws prices from a variety of cryptocurrency exchanges, with the aim of better representing the market.
Bakkt to Roll Out First Bitcoin Futures Testing in July 2019
Institutional crypto exchange Bakkt plans to roll out testing for bitcoin futures trading in early July 2019, according to its CEO, Kelly Loeffler. Loeffler noted in a Medium post this week that Bakkt is working with both the Intercontinental Exchange (ICE) Futures U.S. exchange and ICE Clear U.S. clearing house to prepare the first testing of bitcoin futures trading and custody. In the announcement, Bakkt noted that it has been working with the U.S. Commodity Futures Trading Commission in order to be compliant with federal regulations, as well as to meet major requirements in terms of investors protection. Bakkt was first introducedin August 2018, with the stated goal of offering physically backed bitcoin futures.
EBay Denies Rumors It Will Start Accepting Crypto, Despite Advertising at Crypto Event
EBay has denied rumors after Blockchain Week that it is going to start accepting cryptocurrency as a payment method. Rumors have mounted that the online retail giant would be offering crypto as a payment option since ads were shown at crypto conference Consensus stating: “Virtual currency. It’s happening on eBay.” However, it does currently have a section marked Virtual Currency, where people can use traditional monetary forms to purchase crypto from sellers. In response to the rumors, an eBay spokesperson said that “cryptocurrency is not accepted as a form of payment on the eBay platform, nor is it part of our payments strategy.”
Winners and Losers
The top three altcoin gainers of the week are ultra coin, icechain and pwr coin. The top three altcoin losers of the week are segwit2x, blockport and sharpe platform token.
For more info on crypto prices, make sure to read Cointelegraph’s market analysis.
Most Memorable Quotations
“The more interaction, and willingness that people want to engage with us, the happier we are because we want this to work. We want there to be innovation in these markets. We want there to be change.”
- Amy Starr, chief of the office of capital markets trends at the U.S. SEC
“It is a useless currency, that’s what I believe. Look, I realize that people have different opinions, but to me, it’s garbage.”
- Shark Tank's Kevin O'Leary
“In a small number of months, we should have a fully operational testnet and possibly, by the end of this year we’ll have a fully operational phase 0 Ethereum 2.0.”
- Joseph Lubin, Ethereum co-founder
“I believe that there are use cases that makes sense today, we have yet to find them at scale in financial services. We’re experimenting heavily, we have more patents than any other financial institution in the blockchain space, but have yet to find something that makes a difference for our clients or our customer.”
- Catherine Bessant, chief technology officer at Bank of America
“There is a broad discussion in Washington around 5G being dominated by foreign firms and the U.S. being reliant on foreign technology and foreign expertise. [...] With blockchain and crypto, I think there's a recognition now that these will be part of our future infrastructure. [...] It’s important both for national security and from an economic perspective, that the U.S. is a leader in that.”
-Ryan Zagone, Ripple’s Director of Regulatory Relations
Prediction of the Week
Joseph Lubin on Ethereum 2.0: ETH to Become 1,000 Times More Scalable Within 24 Months
Joseph Lubin, Ethereum co-founder, said in an interview with Cointelegraph this week that the Ethereum blockchain will become about 1,000 times more scalable in 18 to 24 months. In the interview, Lubin noted that Ethereum 2.0, also called Serenity, will be responsible for bringing the drastic scalability increase to the ecosystem. The development, which Lubin noted is divided into four phases, already has eight groups developing clients for the new chain. He explained that there are several ways in which the new chain could be connected with the old one, noting “there may be bidirectional mechanisms” in moving ether (ETH) tokens from the old chain to the new chain.
FUD of the Week
Floyd Mayweather and DJ Khaled Escape Lawsuit Brought by Defrauded ICO Investors
High-profile boxer Floyd Mayweather and music producer DJ Khaled were dismissed this week from a lawsuit brought by investors in a fraudulent initial coin offering (ICO). The two celebrities had been involved in promoting Centra Tech’s ICO, and had originally been charged last November with unlawfully advertising the aforementioned ICO. This week, a judge ruled that the investors who had brought the legal action against the ICO had not proven that they had bought tokens as a direct result of the pair’s actions. In the settlement where neither of the parties admitted to nor denied the charges against them, Mayweather was fined more than $600,000, while Khaled was fined more than $150,000.
Tron Co-Founder and CTO Leaves Project, Alleging Excessive Centralization
Lucien Chen — the former chief technical officer and co-founder of blockchain protocol Tron — announced that he is leaving the project, citing an excessive centralization. In his announcement, Chen noted that in spite of the project’s success, irreconcilable contradictions between himself and co-founder Justin Sun have led him to choose to leave Tron. In the post, Chen noted that Tron is no longer staying true to its founding principle of decentralizing the web, critiquing Tron’s delegated proof-of-stake (DPoS) consensus mechanism and Super Representative governance and block production nodes.
Hacked New Zealand Exchange Cryptopia Appoints Liquidators, Trading Suspended
Hacked New Zealand-based cryptocurrency exchange Cryptopia said this week that trading was suspended and it was appointing liquidators. The exchange specifically said that it has appointed David Ruscoe and Russell Moore from consultancy and audit firm network Grant Thornton New Zealand as the aforementioned liquidators. In mid-January of this year, Cryptopia had said that it was the target of a security breach resulting in significant losses. According to the liquidators, the exchange decided to go into liquidation, as it has been unable to return the business to profitability, notwithstanding management’s reported efforts to reduce costs. The liquidators plan to conduct an investigation with the aim of securing assets for the benefit of the stakeholders.
Best Cointelegraph Features
Major Crypto Exchange in Korea Shut Down in April: 2018 Was a Nightmare for Most
Joseph Young explains what’s been happening with South Korean cryptocurrency exchanges, as they suffered through a freeze on accepting new registrations as well as the overall bear market.
What Crypto Exchanges Do to Comply With KYC, AML and CFT Regulations
Since most altcoins require crypto enthusiasts to purchase them via cryptocurrency exchanges, Cointelegraph takes a look at how these exchanges work with Anti-Money Laundering (AML), Know Your Customer (KYC) and Combating the Financing of Terrorism (CFT) regulations to ensure both safety and regulatory compliance.
Blockchain as Key to Vienna’s Digital Future — Interview with Ulrike Huemer, CIO of Vienna, Austria
Cointelegraph’s German division spoke with the chief information officer of Vienna’s digital future initiative about the ways the city can evolve to integrate more emerging technologies, including, of course, blockchain.

By CCN: On May 17, within minutes, the bitcoin price plummeted from around $7,800 to $6,400 in a flash crash, recording an unexpected 18 percent drop.
The bitcoin price briefly plunges to $6,400, recovers swiftly (source: coinmarketcap.com)
The sudden decline in the bitcoin price led the...

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By CCN: On May 17, within minutes, the bitcoin price plummeted from around $7,800 to $6,400 in a flash crash, recording an unexpected 18 percent drop.
The bitcoin price briefly plunges to $6,400, recovers swiftly (source: coinmarketcap.com)
The sudden decline in the bitcoin price led the valuation of the crypto market to plunge from $257 billion to $225 billion, by more than $32 billion in less than 24 hours.
What triggered the sudden bitcoin price drop?
According to researchers and investors including Su Zhu, the CEO at Three Arrows Capital, and Eric Conner, a product developer at Gnosis, the bitcoin price plummeted as soon as a several thousand bitcoin sell order was placed on Bitstamp.
Zhu said:
BitMEX wicked down to $6,400. 2,000 BTC+ sell wall on Bitstamp absorbed. Looks like a mark price exploit by placing a large sell on stamp (1 of 2 oracles for mark on BitMEX) to trigger liquidations on BitMEX. You would’ve been fine on lvg long on Bitfinex which didn’t go below $7,000.
Speaking to CCN in an exclusive interview, Zhu explained that investors may have taken advantage of the Bitstamp API, which then led contracts on BitMEX to become liquidated as the bitcoin price plunged.
“BITSTAMP API ISSUES I HEARD. SOME BUG WHERE PEOPLE GETTING FILLED ON PRICES ABOVE THEIR BUYS. THIS IS USED ON LEVERAGED PRODUCTS AS MARK PRICE, HENCE TRIGGERING LIQUIDATIONS ON BITMEX,” ZHU TOLD CCN.
Conner suggested that the sell order on Bitstamp that led to BitMEX liquidations may have been larger than 2,000, likely around 5,000 BTC, worth more than $35 million.
“FOR REFERENCE SOMEONE PUT A 5,000 BTC SELL ON BITSTAMP, WHICH BITMEX USES FOR 50% OF ITS FEED AND IT APPEARS TO HAVE TRIPPED SOME ALGORITHMS WHICH MADE A CASCADE ON BITMEX,” CONNER SAID.
Following the 18 percent drop in the bitcoin price, traders have become more cautious about the short-term trend of the market.
One trader said that he expected the market to absorb sell orders considering the positive sentiment around the crypto market in recent weeks. But, the market did not show a large buy back the trader anticipated.
“Hate to be that guy, but I’m not seeing the buy-back I was really hoping to see on BTC just yet. Objectively, this looks like a bear flag, and if I was looking for a long entry, I’d want to wait until we test $200 billion,” the trader said.
Will market recover?
Zhu noted that given the recent price action of bitcoin and other crypto assets is a result of a market structure related move, he expects the market to recover relatively quickly in the near-term.
“THIS IS A PURELY MARKET STRUCTURE RELATED MOVE, I EXPECT IT TO BE BOUGHT UP EXTREMELY QUICKLY,” HE SAID.
Josh Rager, a cryptocurrency trader, also emphasized that the gap between the CME bitcoin futures market closing and the surge in the price of bitcoin last week has been filled, indicating a positive trend for the market.
It remains unclear whether the absorption of a multi-million dollar sell order on May 17 would act as a roadblock in the short to medium term trend of the crypto market.
In recent weeks, the real 10 volume of bitcoin, which estimates the legitimate daily spot volume of the dominant cryptocurrency, hovered at around $1.9 billion, up more than six-fold since March.
If the volume of the market sustains, there exists a strong possibility that the market stabilizes subsequent to the sell-off, as Zhu suggested.
In the long-term, the prospect of the crypto market still remains positive. At Consensus, TD Ameritrade executive vice president Steven Quirk said that more than 6,000 clients of the institution traded something in the crypto market.
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